Conveyancing solicitors could be at risk of being in breach of their obligations, due to a policy change being introduced by the Land Registry.

From 3 August, the Registry will introduce a new ‘early completion’ policy that is intended to make the registration process more efficient and reduce the risk of fraud.

The policy relates to the procedure by which the Registry will process multiple applications. It will apply, for instance, when an applicant applies to register a sale, remortgage or lease that accompanies an application to discharge an existing charge, but without evidence that the existing mortgage has been repaid.

Currently the Registry treats the applications together and will not amend the register until it receives proof that the original mortgage has been discharged. From August, it will deal with them separately.

If an existing mortgage cannot be discharged, but the transfer and new mortgage are registered, it will appear from the register that the property is subject to two mortgages. This could put the new owner’s solicitor in breach of the undertaking that they must give, in compliance with the Council of Mortgage Lenders (CML) Handbook, to ensure that the new mortgage is registered as the first legal charge.

The Registry states that the change will not prevent the new charge taking effect as the first legal charge, but Richard Barnett, chairman of the Law Society’s land law and conveyancing committee, said: ‘There is uncertainty over this issue and other problems thrown up for solicitors by the change.’

He advised practitioners to read the lengthy practice note published by the Law Society.